Luxury Property Auctions: A Better Way to Sell Non-Distressed Luxury Homes

According to the National Association of Realtors (NAR), one in five homes in the U.S. will sell via auction in the next five years. Most of us think: auctions? Aren’t auctions just to sell foreclosures and other distressed properties? Not necessarily. In the last few years, a new trend has emerged: selling and buying high-end non-distressed properties via luxury property auctions.

What is an auction? Simply put, auction is a method of offering goods and services for sell through the bidding process. Auctioning involves taking bids and selling the property usually to the highest bidder.

Today, the most commonly used type of auction is Open Ascending Auction, also known as English Auction. In this type of auction, participants openly bid against each other by putting higher bids and highest bidder wins the auction. That’s when the famous gavel falls and the auctioneer announces: Sold!

There are two basic types of auctions: Reserve Action and Absolute Auction. Under the Reserved Auction, the seller will establish a minimum price (disclosed or undisclosed) for which the property must sell in order for the auction to be valid. If the highest bid does not reach that price, the auction is void. On the other hand, the Absolute Auction has no minimum price (Reserve), which needs to be met.

Why luxury auctions? Properly marketed and executed luxury actions have several advantages for the sellers:

  • Property sells for the highest market price, typically within 60-90 days
  • Price can exceed the price of a traditionally negotiated sale
  • Auctions generate more competition and interest among qualified buyers
  • Property is sold “as is” with no contingencies and with high certainty of closing
  • Auctions significantly reduce sellers’ expenses (carrying costs, price reductions, and opportunity cost).

However, sellers are not the only beneficiaries of auctions. There are several distinctive benefits for the buyers as well:

  • Bidders (buyers) set their own purchase price
  • They compete fairly and openly on the same terms with other buyers
  • No need for lengthy price negotiation process
  • Buyers know that the seller is committed to sell
  • Buyers can review property’s Due Diligence Package before the auction

In most parts of the U.S., the luxury residential real estate market (properties over $1M) is struggling. While low and moderately priced homes are selling relatively quickly nowadays, the high-end properties can linger on the market for many months and sometimes even years.

The sellers of luxury properties are faced with substantial carrying costs, price reductions, and opportunity cost, which can add up to hundreds of thousands of dollars. Recently, I have previewed a luxury home in one of San Diego’s most luxurious coastal communities. The sellers had lost over $1M in carrying costs and price reductions since the property was listed for sale almost two years ago,

Compare that to a luxury property auction, which typically sells a property for the highest market value within 60-90 days. How do the sellers know that their property had sold for the highest market value? They know because correctly marketed luxury auctions generate the highest number of qualified buyers and ultimately the buyers, not the sellers (or their agents), determine the market value of any property.

So, what’s the “secret sauce” of the luxury auctions? For the luxury auction to be successful, it must be properly marketed by a company which specializes in that type of auction. We live in a global economy where goods and services are sold across the country borders, and high-end real estate is no exception. The most successful luxury auctions, involve extensive and well executed marketing campaigns, often with both domestic and global outreach.

As a result, it is not uncommon that luxury auction open houses will attract 150 to 450 buyers eager to preview the property. In some cases buyers, who fly in from all over the planet, are allowed to make an offer on the property before the auction day (so called “pre-auction offer”). Such offer can be accepted, declined, or countered by the seller, depending on the price and motivation.

On the auction day, there are typically 10-50 buyers, who are ready, willing, and able (have certified funds) to compete to purchase the property. This is in stark contrast with traditionally marketed luxury listings, which typically generate much less interest and fewer, if any, buyers.

However, luxury auctions are not for every property and every seller. First of all, the property itself needs to qualify. Typically, the auction firm’s representative will preview the property to make sure that it meets certain criteria to be considered suitable for a luxury auction. Some of the criteria include: price point minimums, architectural design, location, condition, and the overall quality.

Secondly, the sellers need to qualify too as they need to be realistic about the value of their property. Auction is a terrific tool to sell a luxury home or estate, but it is not a “silver bullet” to sell grossly over-priced or over-encumbered properties. For instance, if the sellers want to sell their property for $5M, but the market value is around $2M, the auction is most likely not going to help.

Lastly, the seller must be committed to sell, because once the property is marketed and the auction properly executed, the odds are high that the property will actually sell. In fact, one luxury auctioning company boasts a success rate of 98%.

So, the luxury auctions are not suitable to just “test the market” as some sellers do with conventional real estate agents when they list their properties to see if there is any interest.

In conclusion, luxury property auction can be hugely effective tool in both selling and buying high-end properties. Properly marketed and executed luxury auctions sell properties for the highest market value, in the shortest amount of time, with a success rate as high as 98%.

Hot Deal Luxury Condo Rentals For $40 a Night

No, we didn’t leave off a zero!

You can rent an 1100 square foot condo through the Condo Hot Deal program for as low as $40 per night, when you spend a week at many of the thousands of destination locations throughout the world. There is no timeshare tour, no blackout dates, no booking or maintenance fees, no annual membership fees, no ownership obligations or gimmicks. Just pure fun and relaxation at some of the world’s most luxurious condo rentals at resort locations!

Can you imagine a fun-filled week of siesta and fiesta in Mexico for only $280 per week? What about watching the cliff-diving at Acapulco or snorkeling in the Florida Keys? Of course, some destinations like Hawaii, China and Europe might be a little more expensive, but luxury condo rentals throughout the world are offered at discounts up to 75% off the retail price.

So what’s the catch?

There is none-you just pay a nominal fee for your Condo card lifetime membership and you can take as many vacations as you want. All you pay is the weekly fee. Of course, you are responsible for transportation, food and souvenirs, but it is a great way to enjoy a memorable family vacation of a lifetime, for the price of a small flat screen television.

Of course, if you want to take your family to some of the more exotic locations, it might cost a bit more, but you can spend a week in luxury condo rentals on the beachfront, in the mountains, in exotic foreign countries like Europe or China and not spend much more money than a single night in some luxury hotels would cost!

Not only can you choose spacious, luxurious condo rentals in 1, 2 and 3 bedroom floor plans, but you can choose from thousands of locations. We have over 1,000,000 prime weeks of vacations in the most exotic and fun places to visit.

Can you imagine the kid’s faces when they see the Great Wall of China? Or what about their reaction when they get to visit a quiet fishing village and see the powdery beaches of the Dominican Republic? Whether you want to experience China or the Dominican Republic, the way the locals do or be pampered in 5 star resort surroundings, you can find a dream vacation of a lifetime for a fraction of the cost that most people pay.

What about a special wedding gift for that special newlywed couple? You can transfer a Condo card lifetime membership before the first booking and give them a lifetime of memories. Not only can they vacation on the black sand beaches of Hawaii, drinking bottomless Pina Coladas for their honeymoon, but they can take as many vacations as their hearts desire. Because the luxury condo rentals are so affordable, many Condo card members have already decided where their next destination will be before they get back home!

The condo card lifetime membership is the only card that is not part of a multi-level marketing plan or another type of gimmick. It’s just pure fun at discounts up to 75% off of retail to the most desired locations on Earth!

So what’s stopping you?

All You Need to Know About Luxury Homes

When we talk about luxury homes, what strikes our mind? Lavishness, magnificent, grandeur and of course pricey. Owning a luxury home is not just a status symbol, it’s about enjoying the comforts of one’s life you could think of at your own space called home. Often the term “Luxury Homes” in India is used to lure people into buying projects that are of course not so luxurious. Offering just more than the basic amenities does not come under the term luxury. Luxury homes have a whole lot of special features that highly distinguishes itself from other properties. So before you fall into the trap of the real estate agents, suggest you look into some of the major features that highly speak of luxury and luxurious homes.

SPACE
This is the very first thing that defines a home luxurious. For a housing property to be termed as luxurious it should be at least a 3BHK with attached washrooms and balconies. Ample of space is required to accommodate life’s luxurious amenities. So a huge hall, a lavish dining space, and an expansive kitchen form an integral part of the entire luxury property definition. Don’t forget to look for an attached servant’s room to the residential unit you are looking to add as a luxurious property to your status.

LOCATION IS THE KEY
Believe it or not, location does play a very important role in defining how luxurious your property is. Look for a location that has good connectivity, is marked as safe, is riot and crime free zone, has excellent infrastructure around the property in terms of wider roads, less traffic, more greenery, highly clean etc.

Read – Important Aspects That Define A Luxury Home

FLOOR-TO-CEILING HEIGHT
Luxurious homes are also about beautiful ceiling art and accessories. For the ceiling to hold lavish chandeliers and lights, the height of the floor to ceiling should be more to accommodate the luxuries. For a home to be termed as luxurious, it should meet the standard floor-to-ceiling height i.e. 12 feet or more. Agree or not, if this criterion is not meet then your property does not fall under the luxury tag.

ELEVATOR
Big and spacious elevators with good carrying capacity is an added feature of a luxurious property.

HIGH SECURITY AT YOUR PROPERTY
In today’s not so safe and unstable environment, one must consider making your home as much secured and safe as possible. See whether the property offers inbuilt and enhanced state-of-the-art modern security facilities pre-installed in the house. The house should also be guarded with human guards around the clock with cameras and other surveillance units installed at every corner of the property for enhanced security.

The above-mentioned points are some of the key features of a luxury home. So, the next time you go to look for a luxury home, keep these features in mind so that you are clearly not tricked by the agent to buy a mediocre property in the name of luxury amenities.

With the rise in the economy and exponential growth of wealth among the people, demand for luxurious houses and properties is on the rise. So to fare well in this competitive market, real estate developers are constantly innovating in the architecture and incorporating high-end technologies and innovations to build projects that are capable of attracting niche buyers. Thus the market for such luxurious houses is expected to grow further in the year 2017.